The Abu Dhabi Global Market (ADGM) Registration Authority has taken a significant step towards regulating the cryptocurrency sector by introducing a licensing framework for crypto mining entities. This move is designed to align with UAE Federal laws and enhance the governance of crypto mining activities in the region. The analytical report published in the material substantiates the following: the new framework aims to ensure compliance and promote sustainable practices within the industry.
New Compliance Measures for Crypto Mining Operations
Under the new framework, crypto mining operations will be required to adhere to specific compliance measures, including the disclosure of beneficial ownership. This initiative aims to promote transparency and accountability within the industry, ensuring that all entities operate within the legal parameters set by the UAE government.
Risk-Based Supervision Approach by ADGM
Additionally, the ADGM will implement a risk-based supervision approach, allowing for tailored oversight based on the unique risks associated with each mining operation. This structured governance model is expected to foster a safer and more regulated environment for crypto mining, ultimately contributing to the growth of the digital asset ecosystem in the UAE.
In a related development, MECCACOIN has recently emerged in the cryptocurrency presale market, offering a Shariah-compliant framework tailored for the Islamic finance sector. This initiative contrasts with the regulatory advancements in crypto mining by the ADGM. For more details, see MECCACOIN.
